WSP Global Inc. (WSP.TO)

Sees upside and would buy it here. Is global with only 20% of operations in Canada. AI has been an overhand with a false belief that AI will replace some of WSP's services. WSP partners with Microsoft to do some of their AI tools. WSP is using AI to increase productivity. They are disciplined in companies they buy, including two recent ones to raise their profile in the power industry in the U.S.

Absurd to think ChapGPT can replace a professional engineer. Earnings grew 22% compared to last year. Segment with fastest organic growth is probably power/energy. Big acquisition in February has really bolstered growth stateside, trying to make another in Europe. High margins. At 15x PE, massive discount to 5-year average of 25x.

Still one of the highest-quality infrastructure companies in Canada. Long-term themes of power, electrification, transportation, and AI-driven data centre construction. They do the design and engineering, not the building. Strong, diversified business. Record backlog.

Upside will come, though may take a while. It's going to be leading edge through AI. Ranks 10/10 on fundamentals.

(Note the shortish timeframe.)  Despite AI fears, he feels that engineering might be spared and especially this company. Accountability in its core business is still important, and AI can't give you that. Lower share price makes acquisitions tougher. Organic growth profile has slumped a bit, and he'll be watching to see if it's turned the corner. Overnight, announced an increased bid for a European company, and stock's down 8-9% on that.

On his watchlist. Reports August 5.

It's been beaten down from the software threat by AI. He disagrees with this--you still need architects to design, not AI. WSP (and Stantec which he owns) still have a future. Demand for infrastructure remains and revenue is growing, though we won't know what the margins are for 12-18 months.

Potentially, fears of AI taking over their business are justified. Accenture is down even more than WSP. Some of the bottom, lower-level work will be taken over by AI. WSP could go to $120 as likely as $200. WSP is a wait-and-see with caution.

Instead of trying to pick one winner, use the IFRA ETF.

It's come off its highs, partly due to AI disruption fears, but he doesn't see software headwind risks. It benefits some from AI data centre construction. Is a solid executor. WSP hasn't found its bottom yet, but should happen soon as money rotates out of AI names. WSP should stabilize, then future quarters and earnings will prove that AI are not impacting the company.

Both good companies. To choose is a difficult choice, you'd have to make a call on their respective industries. As well, is the industry structurally challenged by AI -- those concerns are very much overblown.

WSP is exceptionally well run, with an exceptional CEO. STN is the same. Despite AI concerns, business models remain intact. AI will bring some changes in monetization of activities, and has already bettered their businesses. You can't do what they do via AI alone, it's much more complex.

He'd own both in equal weight.

Fears of AI replacing people. It's more likely, though, that AI and people will work together. 

Instead, he owns ATRL.

Has come off on fears about AI. Strong growth profile. Likes it a lot. A Buy today.

It's surprised him how badly they've both acted. Again, it seems the fear is that AI is somehow going to displace what they do -- that's not realistic when you look at their core businesses. He's been adding to both names recently.